Construction in Alaska Mining Will Exceed $265 Million
Speaking to the Resource Development Council May 2 in An- chorage, economist Scott Goldsmith said the construction in Alaska’s mining industry will exceed $265 million this year. While most of Alaska’s construction industry revenue is driven by Federal, state and energy industry spending, mining carries a significant role in this key industry. Spending by the mining industry on exploration and develop- ment can be divided into operating mines, large mines in various states of development and prospects in varies stages of devel- opment. The level of spending is heavily influenced by the current pro- jected world prices of zin, copper, lead, silver and gold. This determines both the funds available for investment and economic viability of these investment. IN addition, total expenditures can be influenced by one or more large individual investment to extend an existing mine or to move ahead with a new large scale mine. Mining spending will be higher in 2019 despite an anticipated slowdown in the world economy and consequently the demand for minerals. The increase is largely because three of t he six major operating mines in Alaska are expanding. The new owners of Pogo Mine have announced plans to expand their operations, the Red Dog Mine has two new prospects under development and the Fort
ISER Economist Scott Goldsmith talkes construction in mining importance at RDC Breakfast
Knox Mine is expanding into the Gilmore prospect to extend the life of the mine of 2030. None of the larger prospects in various states of development will be moving forward to the construction stage this year. Liven- good continues to re-evaluate its design and await a higher gold price. Donlin Gold will likely decide this year whether to move forward. Pebble is still in the permitting state. Prospects in the Upper Kobuk mineral district are still under evaluation. The Bokan rare earth metals project could begin construction in 2020. Spending on other smaller mines and prospects across the state will be higher due to increasing interest from global mining investors.
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www.alaskaminers.org I The Alaska Miner I June 2019 13
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